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4 5 Homework Assignment ( i ) Help Save & Exit Submit Required information [ The following information applies to the questions displayed below. ]
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Allied Merchandisers was organized on May Macy Company is a major customer buyer of Allied seller products.
May Allied made its first and only purchase of inventory for the period on May for units at a price of $ cash per unit for a total cost of $
May Allied sold of the units in inventory for $ per unit invoice total: $ to Macy Company under credit terms The goods cost Allied $
May Macy returns units because they did not fit the customer's needs invoice amount: $ Allied restores the units, which cost $ to its inventory.
May Macy discovers that units are scuffed but are stili of use and, therefore, keeps the units. Allied gives a price reduction allowance and credits Macy's accounts receivable for $ to compensate for May Allied receives payment from Macy for the amount owed on the May purchase; payment is net of returns, allowances, and any cash discount.
Use the above informations, analyze each transaction by indicating its effects on the income statementspecifically, identify accounts and amounts including or for each transaction.
tableIncome Statement Components,May May May May IncreaseDocreaseAmount,IncreaseDecreaseAmount,IncreaseDecreaseAmount,IncreaseDecreaseAmouSalesSales discounts,,,,,,,,Sales retums and allowances,,,,,,,,Net sales,,,,,,,,Cost of goods sold,,,,,,,,Gross profit,,,,,,,,
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